Tue, 16 Nov 2010 11:19:00 +0100

Forex: USD/JPY will rise over the next three to six months - Jyske Bank

FXstreet.com (Barcelona) - Dollar decline May highs around 95.00 has bottomed at 80.20 low, as the Dollar is expected to appreciate while the Yen will decline over the next three to six months, according to the Jyske Bank team.

The yield spread between US and Japan, at all time lows at the moment, is expected to widen over the mid term, as, according to the Jyske Bank team US economy will eventually stabilize: "We expect the global economy to stabilize and this will cause the spread to widen. Rising US growth will lead to talk about inflation and interest-rate hikes."

Technically the pair has breached 82.00 level, which, according to the Jyske Bank, offered strong resistance previously: "Technically, the cross rate has closed above the latest tops at 82, and the cross rate has breached the 50-day average – levels which have previously offered significant resistance. Target is 85.75 and then 88.00 (cf. the chart). Possibility of further potential."

Technical Analysis (2010-11-16 10:15 GMT)
USD/JPY 83.23/83.24 - O: 82.175 H: 82.18 L: 82.105 C: 82.12
Trend	R3: 83.6587
	R2: 83.4506
	R1: 83.2425
	S1: 82.8064
	S2: 83.0144
	S3: 83.2225